A.__The amount of revenue for the local district for the previous fiscal year adjusted by the change in the assessed value of taxable real and personal property in the local district, or the amount of revenue for the local district for the previous fiscal year adjusted by the inflation adjustment factor plus the population adjustment factor, whichever is lower; plus

B.__Any increases attributable to measures approved under section 1993.

3.__Exceptions.__The following may not be counted in calculating expenditure limitations under this section:

A.__Amounts returned to taxpayers as refunds of amounts exceeding the expenditure limitation in a prior year;

B.__Amounts received from the Federal Government;

C.__Amounts collected on behalf of another level of government;

D.__Pension contributions by employees and pension fund earnings;

E.__Pension and disability payments made to former government employees;

F.__Amounts received as grants, gifts or donations that must be spent for purposes specified by the donor;

G.__Amounts paid pursuant to a court award; or

H.__Reserve transfers or expenditures.

4.__Exceeding expenditure limitation.__If revenues are projected to exceed the expenditure limitations in this section, the amount of revenues exceeding the expenditure limitations may be spent if approved in the same manner as required for a revenue increase under section 1993.

§1995.__Transfers and refund of unappropriated General Fund

surplus

1.__Fund created.__The Tax Relief Reserve Fund, referred to in this section as "the fund," is created for the purposes set